The first step in the home buying process is completing a discovery call with one of our mortgage advisors.

• Step 1 - Initial Discovery Call with One of Our Trusted Mortgage Advisors

• During your discovery call, we discuss your unique financial situation, your property objectives, your borrowing capacity, the steps to take in the home buying process, & advise on any hurdles you may encounter to help pave the way for a smooth home buying experience.
• This initial step provides clarity to common questions or concerns. We even go through some what-if calculations & scenarios to help ensure you have a strong understanding of what your options are. A detailed action plan is then prepared, giving you the confidence to move forward with certainty.

• Step 2 – Provide Information: Application & Documents

• At this point, if you would like to proceed, as part of your “Let’s Get Started” package, we will send you a formal mortgage application, credit consent form, & a checklist of lender required documents in which you can safely upload into your encrypted client portal. Once complete, the heavy lifting on your end is done & we will proceed with setting up your new pre-approval.

• A true pre-approval is not one that is done on an online pre-approval app or calculator. These options though are a great general tool, they do not address many of the underlining components that ensure accuracy when securing mortgage financing.
• A true pre-approval requires submitting an application, pulling your credit, & submitting supporting documentation to your trusted mortgage advisor.
• At Boychuk Mortgage Group, your pre-approval includes a one-on-one success planning session to help educate you & to create a long-term mortgage & wealth strategy!
• We consider our pre-approvals a guaranteed stamp of approval as we have done the proper due diligence to protect your best interest, in advance of shopping.
• Pre-approvals are a free, no obligation step, put in place to help you understand your unique borrowing power before starting the home buying process with your realtor.
• Your pre-approval rate will be held for 120 days (sometimes more), protecting you should rates rise. This comes with a guaranteed best rate at time of submission.
• Understanding your borrowing power at the time of offer, not only provides you with the upper hand in negotiations, but it gives you the confidence needed to act.

One of the benefits to working with an independent mortgage advisor, is that we situate you with the very best lender, with the best terms, & the lowest guaranteed rate that supports your needs of today & goals of tomorrow.

• What our mortgage team provides you that the corporate banks can’t!

• Options – We have access to 100+ lenders & 5,000 products, resulting in you saving money and having multiple options, where the bank offers you their products only, which do not necessarily have the lowest rates.
• Exceptional Service – Our office doors do not close come evenings or weekends. We are available 24/7 & work around the clock with you.
• Continuous Support – We are here for you for the life of your mortgage, should anything come up, or questions arise.
• Unbiased Advice – We work for you & not the lenders.
• Free! – Our service to you is free with NO hidden fees.
• We Negotiate on Your Behalf - Because of our partnerships, we have the upper hand in securing our clients the lowest rates.
• Relationships – With your best interest at heart, we win when you win. Our focus is to help you meet your goals while educating you on building long term wealth in real estate.

What you need for your minimum down payment is a very common question in today’s market so let’s break that down.

• The minimum down payment requirements are:

• 5% on the first $500,000.
• 10% on the next $500,000, up to $1,000,000.
• 20% on any purchase over $1,000,000.

• 20% will also be required when you:

• Purchase a rental property
• Take a 30-year amortization
• Refinance your mortgage
• Purchase over $1,000,000
• Utilize alternative financing options

• Examples of some down payment sources may include:

• Personal savings
• A gift from an immediate family member
• RRSP’s or TFSA’s
• Investment accounts
• Borrowed money in some cases

• A purchase deposit demonstrates the buyer’s good faith to the seller to close on their purchase. This deposit is held in trust & then credited back to the buyer at completion as part of their total down payment.
• For example, if your total down payment is $25,000 & your deposit is $10,000, you will only owe the difference of $15,000 at time of completion. Alternatively, if your down payment is $25,000 & you agree to a $30,000 deposit, you will be reimbursed the $5,000 at completion.
• Typically, the deposit is 5%, sometimes 10% of the purchase price.
• Is this deposit due right away? No, not until you agree to move forward with your sale. In other words, your deposit is due once you complete your due diligence period (also known as your subject removal period), meaning you’ve secured firm mortgage financing & completed your home inspection.

• Just click the “Apply Online” button on our website to get started.
• With a traditional application & a few lender required documents in hand, we’ll have your pre-approval to you within 48 hours.
• During this time, we will reach out to you to conduct a one-on-one success planning meeting aimed at providing you with an understanding of your goals & help to educate you on strategies to help you get ahead.
• All of this from the comfort of your own home!

• Remember the FOUR benefits to investing in real estate: Principal Pay Down

• Unlike your rent payment, mortgage payments include a principal component that otherwise brings your total monthly mortgage balance owing down, & therefore your equity up.

• Appreciation

• Appreciation refers to the increase in your home’s value over time. Your home value may increase for a number of reasons, including, interest rate fluctuations, supply & demand, inflationary periods, & even emotional buyers shifting the market.

• Cash Flow

Whether you’ve purchased a stand-alone rental property or have a rental component to your home, this secondary source of income (ideally above & beyond your total monthly bills) provides great value.
For Example

• Rent = $2,500
• Mortgage = $1,500
• Expenses = $500
• Cashflow = $500

• Sweat Equity

• Sweat equity refers to the physical improvement of upgrading your home through renovations.

• Let’s look at a simple example:

• Based on consistent payments at a rate of 2.59% over 25 years with 5% down ($25,000) & a 2.5% conservative annual appreciation.

• TODAY
  • Purchase Price = $500,000
  • Mortgage Balance = $494,000 - with mortgage loan insurance

• In 5 Years
  • Value = $565,704.11
  • Mortgage Balance = $418,983.89

• 5-year estimated property value = $565,704.11
• 5-year principal pay down = $75,016.11
• 5-year earned equity = $121,720.22 - includes day one loan insurance premium
• 5-year equity outlook = $146,720.22

Remember – It’s time in the market that builds WEALTH in real estate!

• Mortgage loan insurance, also known as mortgage default insurance, is an insurance premium paid by the borrower, to in which protects the lender for in the event that the borrower defaults on their mortgage obligations.
• Mortgage loan insurance is provided by one of three institutes, CMHC, Canada Guaranty, or Sagen. Mortgage loan insurance is implemented on any mortgage that has a down payment of less than 20% of the purchase price of a home. The insurance premiums range from 0.50% to 7.0% and can be added directly onto the mortgage amount.

Let’s look below at the main closing’s costs associated with buying your new home:

• Land Transfer Tax

  In the province of BC, when ownership transfers title, buyers are faced with a land transfer tax – or better known as property transfer tax

• + 1% on first $200,000
• + 2% on balance up to $2,000,000
• + 3% on the balance over $2,000,000
• + 2% on balance over $3,000,000 **If Residential**

• Appraisal Fees

• Your lender may ask you to order a home appraisal as part of your conditions. This cost varies depending on property value, but appraisals typically range between $300 - $500.

• Legal Fees

• At the final stage of your home buying process, your legal team (lawyer or notary), are responsible for legalizing your transaction, including registering your mortgage & transferring title. This estimated cost is between $1,500 - $2,500.

• Home Inspection

• A home inspection is optional in most circumstance and will cost between $300 - $500.

• Home Insurance

• Most lenders will require proof of home insurance at completion. This cost will vary, but you should budget $50 - $100 per month.

• Costs of Newly Constructed Homes

• On a new construction purchase, you will likely be required to pay a 5% GST tax at completion, on top of your down payment.

• Adjustment Costs

• If the seller has pre-paid property taxes, water bills, or utilities in advance for that year, you’ll need to reimburse them at completion via your legal team’s final adjustments. This can potentially add hundreds to your closing costs. On a positive note, the first few months in your new home will be paid for.

• Title Insurance

• Title insurance can safeguard you against fraud. Fees here range from $150 - $300 & are arranged by your legal team.

• Down Payment

• Your down payment is the accumulation of funds that make the difference between your total purchase price & your total mortgage.

• Minimum Down Payment

• 5% on the first $500,000
• 10% on the next $500,000 up to $1,000,000
• 20% on any purchase over $1,000,000

• Moving-In-Costs

• Make sure to budget for last minute expenses such as professional movers, locksmiths, cleaning supplies, etc…

• Common home ownership costs include:

• Mortgage Payment
• Property Taxes
• Home Insurance
• Strata Fees (If applicable)
• Utilities – Heat, Water, Gas
• Internet & Cable

Our trusted mortgage advisors will give you the upfront options you need & help you put together a plan that fits your budget.

The first-time home buyer’s incentive is a shared equity program with the government who will loan you 5% - 10% of the homes purchase price as an additional source of down payment.

• Pros

• Helps you qualify.
• Brings your monthly payments down.
• Interest free loan
• In the event of depreciation at time of sale, the government will cover up to a max 8% of that loss.

• Cons

• In the event of appreciation at time of sale, the government will see up to a max 8% of that gain.
• This loan is to be paid back within 25 years or at time of sale, refinance, port, or release of security. You can also pay back the loan in advance of 25 years at no extra cost.

• Criteria

• Total annual household income must not exceed $120,000 / $150,000 if the home is in Toronto, Vancouver, or Victoria.
• Your total borrowing is no more than 4x your qualifying income / 4.5x if the home is in Toronto, Vancouver, or Victoria.
• You & your partner are first time home buyers.
• You are a Canadian citizen, permanent resident, or non-permanent resident with a work visa.
• You meet the minimum required down payment of less than 20%.

• Property Type

• New construction = 5% or 10%
• Existing home = 5%
• New & existing mobile / manufactured home = 5%

• Criteria for Existing Homes

• Full rebate up to $8,000 on a purchase price of $500,000 or less.
• Partial rebate on a purchase price between $500k - $525k.
• Partial rebate on a purchase price of $500k or less where one borrower is not a FTHB.

• Criteria for New Builds

• Full rebate up to $13,000 on a purchase price of $750,000 or less.
• Partial rebate on a purchase price between $750k & $800k.

• First time home buyers who purchase a qualifying home can claim a non-refundable tax credit of up to $750 for the year of purchase.
• This value is calculated by multiplying $5,000 by the lowest personal income tax rate (15% in 2022).
• Currently, the proposed change is $10,000, otherwise resulting in a $1,500 credit.

• As a first-time home buyer, the Home Buyers Plan allows you to withdrawal up to $35,000 from your registered retirement savings plan (RRSP), for the purpose of a down payment on an existing home or to build a home for yourself, or a related person with disability.

• When you’re making an offer, you always want to put your best foot forward. Working out a strategy with your realtor will help you competitively if you find yourself in a multiple offer situation.
• Our recommendation for a successful offer requires speaking to one of our team members to have your pre-approval in place.
• Setting up your pre-approval will give you the ceiling price of what you can qualify for, your expected payments, & the costs needed to complete, including your total down payment. This eliminates any surprises!
• Our guaranteed client pre-approvals will also address your long term goals and give you the strategies and options to help you achieve long term success.
• As every offer will be unique, this allows us to be creative with giving you that competitive edge in winning your offer.

• In a purchase contract, these are often call subjects.
• On the financing side, we are looking for the condition “subject to financing” as this allows us, your mortgage team, to finalize your new mortgage prior to the final commitment of your offer.
• Additional conditions include “subject to appraisal”, “subject to inspection”, “subject to strata documents”, “subject to sale”, and many more. Any one of these subjects will give you the option to back out of your offer given one or more avenues do not align with your vision.
• Typical conditions are in place for 7-10 days, and are ultimately put there protect you, the buyer. If you find yourself in a competitive market, it’s always best to speak to us prior to offering without subjects.
• Why do I need “subject to financing” if I have a pre-approval?
• The answer is easy - Your “property” is not pre-approved. With every mortgage, you, as well as your property, will both need to meet certain lender criteria’s.

• The quick answer is yes, you are.
• The legality of your purchase includes you owning a percentage of your new home, and so does your co-signer. While your co-signer is looked at as a prior homeowner, their portion of the tax credit would not be exempt leaving your portion to still be exempt.
• For example, you and your co-signer purchase your new home as “Tenants in Common” where you own 99% & your co-signer owns 1%. In this circumstance, you would be exempt from 99% of the taxes.